Reckitt Benckiser Group (RBGLY) AI Stock Analysis

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Reckitt Benckiser Group

(OTC:RBGLY)

Rating:78Outperform

Price Target:

$17.00

▲(13.41% Upside)

Reckitt Benckiser Group's overall stock score is driven by strong financial performance and positive technical indicators. The optimistic earnings call further supports the score, despite high valuation concerns. Challenges in specific markets and product lines are noted but are outweighed by the company's robust growth in emerging markets and cost-saving initiatives.

Reckitt Benckiser Group (RBGLY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$50.71B

Dividend Yield3.61%

Average Volume (3M)188.50K

Price to Earnings (P/E)31.7

Beta (1Y)0.12

Revenue Growth0.29%

EPS Growth-14.19%

CountryUS

Employees37,900

SectorConsumer Defensive

Sector Strength47

IndustryHousehold & Personal Products

Share Statistics

EPS (TTM)0.38

Shares Outstanding3,388,204,600

10 Day Avg. Volume17,521

30 Day Avg. Volume188,496

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.14

Enterprise Value/Revenue4.09

Enterprise Value/Gross Profit6.75

Enterprise Value/Ebitda19.60

Forecast

1Y Price Target

$15.88

Price Target Upside5.94% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Reckitt Benckiser Group Business Overview & Revenue Model

Company DescriptionReckitt Benckiser Group (RBGLY) is a global consumer goods company that specializes in health, hygiene, and home products. Founded in 1823 and headquartered in Slough, England, RBGLY operates across multiple sectors, including health, hygiene, and home care. Its core product portfolio includes well-known brands such as Dettol, Lysol, Nurofen, Durex, and Vanish, among others. The company focuses on delivering innovative solutions that improve everyday living, catering to consumers' needs for cleanliness, health, and well-being.

How the Company Makes MoneyReckitt Benckiser generates revenue primarily through the sale of its consumer products across various categories. The company's revenue model is based on direct sales through retail channels, online platforms, and distribution partnerships. Key revenue streams include health products, which encompass over-the-counter medications and dietary supplements; hygiene products, including disinfectants and personal care items; and home care products, such as laundry detergents and surface cleaners. Additionally, Reckitt Benckiser benefits from its significant investments in marketing and brand development, which help to drive consumer loyalty and repeat purchases. The company also engages in strategic partnerships and collaborations with retailers and e-commerce platforms to enhance its market reach and distribution efficiency, contributing to its overall earnings.

Reckitt Benckiser Group Earnings Call Summary

Earnings Call Date:Jul 24, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Mar 04, 2026

Earnings Call Sentiment Positive

The earnings call highlighted strong performance in Core Reckitt, with significant growth in emerging markets and successful cost-saving initiatives. However, challenges remain in the North American market and certain product lines, such as Essential Home and Mead Johnson Nutrition.

Q2-2025 Updates

Positive Updates

Strong Core Reckitt Revenue Growth

Core Reckitt revenues grew 5.3% in Q2, and 4.2% for the half year, with excellent growth across emerging markets.

Improved Operating Profit and Margins

Adjusted operating profit increased 7%, with margin improvements of 110 basis points to 24.6%, driven by the Fuel for Growth program.

Emerging Markets Performance

Emerging Markets delivered 12.8% like-for-like growth for the half year, with double-digit revenue growth across all categories in Q2.

Successful Fuel for Growth Program

The Fuel for Growth program delivered a 190 basis point reduction in fixed costs in the first half.

Increase in Shareholder Returns

Interim dividend increased by 5%, and a new GBP 1 billion share buyback program was announced.

Negative Updates

North America Revenue Decline

Like-for-like net revenue in North America declined 1.7% in the half year, with particular softness in Q2.

Challenges in Essential Home and Mead Johnson Nutrition

Essential Home saw a like-for-like net revenue decline of 6.5% in the half, and Mead Johnson Nutrition declined 3.3%.

Self Care Revenue Decline

Self Care revenues declined 1.7% in the half, impacted by the shelf reset for Mucinex products.

Company Guidance

During Reckitt's Half Year 2025 results call, the company provided optimistic guidance for the remainder of the year. The company reported strong financial performance in the first half, with Core Reckitt revenues growing by 5.3% in Q2 and 4.2% for the half. Adjusted operating profit increased by 7%, leading to a 4.4% growth in first-half EPS. Looking ahead, Reckitt raised its full-year guidance for Core Reckitt like-for-like net revenue growth to over 4%, up from the previous 3% to 4%, driven by strong performance in Emerging Markets, which grew 14.9% in Q2. The company's Fuel for Growth program delivered cost savings ahead of plan, contributing to the 110 basis point increase in adjusted operating margin to 24.6%. Reckitt also announced a new GBP 1 billion share buyback program, emphasizing its commitment to returning excess cash to shareholders. Despite the positive outlook, the company remains cautious about the uncertain environment in North America and Europe, but it is confident in its ability to deliver sustained growth.

Reckitt Benckiser Group Financial Statement Overview

Summary

Reckitt Benckiser Group shows solid financial health with strong profitability and cash flow metrics, despite a recent dip in revenue. The balance sheet remains stable, with manageable leverage and good return on equity. While the company is well-positioned in terms of profitability and cash generation, future growth may be challenged by the declining revenue trend.

Income Statement

Positive

Over the past year, Reckitt Benckiser Group experienced a decline in total revenue from $14.61 billion to $14.17 billion, indicating a revenue contraction of approximately 2.68%. Despite this, their gross profit margin remains robust at 60.66%, underscoring effective cost management. The EBIT margin is healthy at 17.11%, although the net profit margin decreased slightly to 10.06%. Overall, the company maintains strong profitability, but the recent downturn in revenue growth is a concern.

Balance Sheet

Positive

The balance sheet shows stability with a debt-to-equity ratio of 1.29, indicating a moderate level of leverage. The equity ratio stands at 26.47%, reflecting a solid capital structure. Return on equity is calculated at 21.28%, demonstrating good returns for shareholders. However, the company's total assets have decreased, which may impact future growth potential.

Cash Flow

Positive

Reckitt Benckiser Group's cash flow statement highlights robust free cash flow to net income ratio of 1.56, emphasizing strong cash generation relative to net income. Operating cash flow slightly increased to $2.682 billion, reinforcing the company's ability to generate cash from operations. Nevertheless, the free cash flow growth rate is modest at 1.37%, suggesting limited cash flow expansion.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.17B	14.61B	14.45B	13.23B	13.99B
Gross Profit	8.60B	8.76B	8.36B	7.69B	8.44B
EBITDA	2.96B	3.19B	3.94B	436.00M	3.48B
Net Income	1.43B	1.64B	2.33B	-63.00M	1.19B
Balance Sheet
Total Assets	25.30B	27.14B	28.74B	26.95B	31.29B
Cash, Cash Equivalents and Short-Term Investments	760.00M	1.39B	1.16B	1.26B	1.65B
Total Debt	8.66B	8.54B	8.88B	9.56B	10.56B
Total Liabilities	18.58B	18.67B	19.26B	19.49B	22.13B
Stockholders Equity	6.70B	8.45B	9.44B	7.40B	9.12B
Cash Flow
Free Cash Flow	2.22B	2.19B	1.95B	1.32B	3.12B
Operating Cash Flow	2.68B	2.64B	2.40B	1.70B	3.52B
Investing Cash Flow	-396.00M	-466.00M	-139.00M	239.00M	-512.00M
Financing Cash Flow	-2.71B	-1.81B	-2.38B	-2.29B	-2.86B

Reckitt Benckiser Group Technical Analysis

Technical Analysis Sentiment

Positive

Last Price14.99

Price Trends

50DMA

14.15

Positive

100DMA

13.53

Positive

200DMA

12.88

Positive

Market Momentum

MACD

0.24

Positive

RSI

59.04

Neutral

STOCH

49.79

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBGLY, the sentiment is Positive. The current price of 14.99 is above the 20-day moving average (MA) of 14.79, above the 50-day MA of 14.15, and above the 200-day MA of 12.88, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 59.04 is Neutral, neither overbought nor oversold. The STOCH value of 49.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RBGLY.

Reckitt Benckiser Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RBGLY	78 Outperform	$50.71B	31.74	17.21%	3.61%	0.29%	-14.19%
PG	74 Outperform	$365.34B	23.99	31.23%	2.65%	0.29%	7.85%
UL	73 Outperform	$152.12B	25.31	28.36%	3.18%	-0.30%	-14.60%
CHD	70 Outperform	$22.50B	43.57	12.07%	1.27%	1.13%	-34.78%
CL	63 Neutral	$68.00B	23.65	705.21%	2.42%	0.05%	3.55%
Sector *	63 Neutral	$20.42B	14.38	-3.60%	3.17%	2.07%	-6.17%
KMB	60 Neutral	$43.07B	17.89	196.26%	3.81%	-6.89%	7.52%

* Consumer Defensive Sector Average

Performance Comparison

RBGLY

Reckitt Benckiser Group

14.88

3.90

35.52%

CHD

Church & Dwight

92.09

-7.50

-7.53%

Colgate-Palmolive

83.42

-20.07

-19.39%

KMB

Kimberly Clark

128.72

-9.52

-6.89%

Procter & Gamble

155.65

-10.19

-6.14%

Unilever

62.37

-0.58

-0.92%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025